1. 15.1
CHAPTER 15:CHAPTER 15:
CLOSING OBSERVATIONSCLOSING OBSERVATIONS
Kevin Lane KellerKevin Lane Keller
Tuck School of BusinessTuck School of Business
Dartmouth CollegeDartmouth College

2. 15.2
Brand Knowledge StructureBrand Knowledge Structure
 Brand awareness, depth, and breadth
 Brand associations

3. 15.3
Summary of Customer-Based BrandSummary of Customer-Based Brand
Equity FrameworkEquity Framework
 Sources of brand equitySources of brand equity
 StrengthStrength
 FavorabilityFavorability
 UniquenessUniqueness
 Outcomes of brand equityOutcomes of brand equity
 Greater loyaltyGreater loyalty
 Less vulnerability to competitive marketing actionsLess vulnerability to competitive marketing actions
 Less vulnerability to marketing crisesLess vulnerability to marketing crises
 Larger marginsLarger margins
 More inelastic consumer response to price increasesMore inelastic consumer response to price increases
 More elastic consumer response to price decreasesMore elastic consumer response to price decreases
 Greater trade cooperation and supportGreater trade cooperation and support
 Increased marketing communication effectivenessIncreased marketing communication effectiveness
 Possible licensing opportunitiesPossible licensing opportunities
 Additional brand extension opportunitiesAdditional brand extension opportunities

4. 15.4
Tactical GuidelinesTactical Guidelines
 Building brand equityBuilding brand equity
1.1. Through the initial choice of the brand elementsThrough the initial choice of the brand elements
making up the brandmaking up the brand
2.2. Through marketing activities and the design of theThrough marketing activities and the design of the
marketing programmarketing program
3.3. Through the leverage of secondary associationsThrough the leverage of secondary associations
that link the brand to other entitiesthat link the brand to other entities

5. 15.5
Guidelines for Building Brand EquityGuidelines for Building Brand Equity
 Mix and match brand elements
 Create a rich brand image and high perceived
quality
 Adopt value-based pricing strategy
 Consider a range of distribution options
 Mix marketing communication options
 Leverage secondary associations

6. 15.6
Importance of Complementarity andImportance of Complementarity and
ConsistencyConsistency
 CComplementarityomplementarity means choosing different brandmeans choosing different brand
elements and supporting marketing activities so thatelements and supporting marketing activities so that
the potential contribution to brand equity of onethe potential contribution to brand equity of one
compensates for the shortcomings of others.compensates for the shortcomings of others.
 A high degree ofA high degree of consistencyconsistency across these elements helpsacross these elements helps
to create the highest level of awareness and theto create the highest level of awareness and the
strongest and most favorable associations possible.strongest and most favorable associations possible.

7. 15.7
Guidelines for Measuring Brand EquityGuidelines for Measuring Brand Equity
 Formalize the firm’s view of brand equity
 Conduct brand inventories
 Conduct consumer tracking studies
 Assemble results of outcome measures
 Establish a department to oversee the
implementation

8. 15.8
Guidelines for Managing Brand EquityGuidelines for Managing Brand Equity
 Define brand hierarchy
 Create global associations
 Introduce brand extensions
 Clearly establish the roles of brands in the
portfolio
 Reinforce brand equity over time
 Enhance brand equity over time
 Identify differences in consumer behavior in
different market segments

9. 15.9
Characteristics of Strong BrandsCharacteristics of Strong Brands
ManagersManagers
 Understand brand meaning and market appropriate products in anUnderstand brand meaning and market appropriate products in an
appropriate mannerappropriate manner
 Properly position the brandProperly position the brand
 Provide superior delivery of desired benefitsProvide superior delivery of desired benefits
 Employ a full range of complementary brand elements andEmploy a full range of complementary brand elements and
supporting marketing activitiessupporting marketing activities
 Embrace integrated marketing communications and communicateEmbrace integrated marketing communications and communicate
with a consistent voicewith a consistent voice
 Measure consumer perceptions of value and develop a pricingMeasure consumer perceptions of value and develop a pricing
strategy accordinglystrategy accordingly
 Establish credibility and appropriate brand personality and imageryEstablish credibility and appropriate brand personality and imagery
 Maintain innovation and relevance for the brandMaintain innovation and relevance for the brand
 Strategically design and implement a brand hierarchy and brandStrategically design and implement a brand hierarchy and brand
portfolioportfolio
 Implement a brand equity management system to ensure thatImplement a brand equity management system to ensure that
marketing actions properly reflect the brand equity conceptmarketing actions properly reflect the brand equity concept

10. 15.10
Seven Deadly Sins of Brand ManagementSeven Deadly Sins of Brand Management
1.1. Failure to understand the full meaning of theFailure to understand the full meaning of the
brandbrand
2.2. Failure to live up to the brand promiseFailure to live up to the brand promise
3.3. Failure to adequately support the brandFailure to adequately support the brand
4.4. Failure to be patient with the brandFailure to be patient with the brand
5.5. Failure to adequately control the brandFailure to adequately control the brand
6.6. Failure to properly balance consistency andFailure to properly balance consistency and
change with the brandchange with the brand
7.7. Failure to understand complexity of brandFailure to understand complexity of brand
equity measurement and managementequity measurement and management

11. 15.11
Industrial and B2B BrandingIndustrial and B2B Branding
 Adopt a corporate or family branding strategyAdopt a corporate or family branding strategy
 Link non-product-related imagery associationsLink non-product-related imagery associations
 Employ full range of marketing communicationEmploy full range of marketing communication
optionsoptions
 Leverage equity of other companies that areLeverage equity of other companies that are
customerscustomers
 Segment markets carefully and develop tailoredSegment markets carefully and develop tailored
branding and marketing programsbranding and marketing programs

12. 15.12
Guidelines for High-Tech BrandingGuidelines for High-Tech Branding
 Establish brand awareness and rich brand imageEstablish brand awareness and rich brand image
 Create corporate credibility associationsCreate corporate credibility associations
 Leverage secondary associations of qualityLeverage secondary associations of quality
 Avoid overbranding productsAvoid overbranding products
 Selectively introduce new products as newSelectively introduce new products as new
brands and clearly identify the nature of brandbrands and clearly identify the nature of brand
extensionsextensions

13. 15.13
Guidelines for Service BrandingGuidelines for Service Branding
 Maximize service qualityMaximize service quality
 Employ a full range of brand elements to enhanceEmploy a full range of brand elements to enhance
brand recallbrand recall
 Create and communicate strong organizationalCreate and communicate strong organizational
associationsassociations
 Design corporate communication programs thatDesign corporate communication programs that
augment consumers’ service encounters andaugment consumers’ service encounters and
experiencesexperiences
 Establish a brand hierarchy using distinct family orEstablish a brand hierarchy using distinct family or
individual brands as well as meaningful ingredientindividual brands as well as meaningful ingredient
brandsbrands

14. 15.14
Guidelines for Branding RetailersGuidelines for Branding Retailers
 Create a brand hierarchy consisting of the storeCreate a brand hierarchy consisting of the store
as a whole as well as individual departmentsas a whole as well as individual departments
 Enhance the manufacturer’s brand equity byEnhance the manufacturer’s brand equity by
communicating PODscommunicating PODs
 Establish brand equity at all levels of the brandEstablish brand equity at all levels of the brand
hierarchyhierarchy
 Create multichannel shopping experienceCreate multichannel shopping experience
 Avoid overbrandingAvoid overbranding

15. 15.15
Guidelines for Small Business BrandingGuidelines for Small Business Branding
 Emphasize building one or two strong brandsEmphasize building one or two strong brands
 Focus the marketing program on one or two keyFocus the marketing program on one or two key
associationsassociations
 Employ a well-integrated set of brand elements thatEmploy a well-integrated set of brand elements that
enhances both brand awareness and imageenhances both brand awareness and image
 Design creative brand-building push campaignsDesign creative brand-building push campaigns
 Leverage as many secondary associations asLeverage as many secondary associations as
possiblepossible

16. 15.16
Guidelines for Online BrandingGuidelines for Online Branding
 Don’t forget the brand building basicsDon’t forget the brand building basics
 Create strong brand identityCreate strong brand identity
 Generate strong consumer pullGenerate strong consumer pull
 Selectively choose brand partnershipsSelectively choose brand partnerships
 Maximize relationship marketingMaximize relationship marketing

17. 15.17
Future Brand PrioritiesFuture Brand Priorities
 How will branding change in the coming years?How will branding change in the coming years?
What are the biggest branding challenges? WhatWhat are the biggest branding challenges? What
will make a successful “twenty-first-centurywill make a successful “twenty-first-century
brand”?brand”?

18. 15.18
Building Brand EquityBuilding Brand Equity
 Brand elementsBrand elements
 In a cluttered, competitive marketplace, the brandIn a cluttered, competitive marketplace, the brand
elements that make up the brand will have to doelements that make up the brand will have to do
more and more of the selling job.more and more of the selling job.
 Marketing programsMarketing programs
 Strong brands in the twenty-first century also willStrong brands in the twenty-first century also will
rise above others by better understanding the needs,rise above others by better understanding the needs,
wants, and desires of consumers and creatingwants, and desires of consumers and creating
marketing programs that fulfill and even surpassmarketing programs that fulfill and even surpass
consumer expectations.consumer expectations.

19. 15.19
Measuring Brand EquityMeasuring Brand Equity
 Marketers of successful twenty-first-centuryMarketers of successful twenty-first-century
brands will create formalized measurementbrands will create formalized measurement
approaches and processes that ensure theyapproaches and processes that ensure they
continually monitor their sources of brandcontinually monitor their sources of brand
equity and those of competitors.equity and those of competitors.

20. 15.20
Managing Brand EquityManaging Brand Equity
 It will be essential in building strong twenty-first-It will be essential in building strong twenty-first-
century brands to align internal and external brandcentury brands to align internal and external brand
management.management.
 Internal brand managementInternal brand management ensures that employees andensures that employees and
marketing partners appreciate and understand basic brandingmarketing partners appreciate and understand basic branding
notions and how they can affect the equity of brands.notions and how they can affect the equity of brands.
 External brand managementExternal brand management requires understanding the needs,requires understanding the needs,
wants, and desires of consumers and creating brandwants, and desires of consumers and creating brand
marketing programs that fulfill and even surpass consumermarketing programs that fulfill and even surpass consumer
expectations.expectations.
 Companies must also align bottom-up and top-downCompanies must also align bottom-up and top-down
marketing management .marketing management .

21. 15.21
Achieving Marketing BalanceAchieving Marketing Balance
 The most fundamental challenge of marketingThe most fundamental challenge of marketing
and brand management is reconciling the manyand brand management is reconciling the many
potential trade-offs in marketing decisionspotential trade-offs in marketing decisions
 There are three means or levels of achievingThere are three means or levels of achieving
marketing balance, in increasing order ofmarketing balance, in increasing order of
potential effectiveness:potential effectiveness:
 AlternateAlternate
 DivideDivide
 FinesseFinesse